Okaloosa still recovering a year after TDC scandal

Published: Saturday, April 27, 2013 at 02:48 PM.

In late April 2012, the title to a 2011 Marquis yacht arrived at the Okaloosa County Clerk of Court’s Office.

Mark Bellinger, the director of the county’s Tourist Development Council, had purchased the 40-foot luxury yacht in late December 2011 for $710,000 in bed tax money.

“We hadn’t heard anything about it,” recalled county Finance Director Gary Stanford, who found the title and showed it to then-County Administrator Jim Curry. “We had a lot of questions.”

From that point forward, officials began unraveling the biggest scandal to rock Okaloosa County since the 2009 arrest of former Sheriff Charlie Morris on corruption charges.

The ensuing investigation by the Sheriff’s Office grew to involve state lawmakers and auditors, the Florida Department of Law Enforcement and the FBI.

No one could have seen where it eventually led.

“The boat was absolutely the start of it. … I knew right there, there was something seriously wrong,” said Curry, who retired April 19.

Uncovering fraud

Bellinger, known among county employees as something of a creative dynamo with big ideas, was hired in May 2010. He arrived a few weeks after the Deepwater Horizon oil spill, and by all accounts he boosted tourism during a dark time on the Emerald Coast.

“There is no doubt he mesmerized everyone with his ability to formulate marketing plans and … restore tourism in this area,” Curry said. “To a certain degree, I think that helped mask what he eventually went on to do.”

When the title to the yacht arrived, it was clear Bellinger had made the purchase without approval from county commissioners. He managed to keep the boat a secret from the board for four months.

For Bellinger, whose boss was the chairman of the County Commission, it was easy to operate independently and outside the rules required of other county departments. Under his leadership, the funding of tourism-related events often was haphazard, with little or no accounting of how the money was spent.

He resigned May 1, 2012, after being confronted by county commissioners — two of whom wanted to fire him immediately — during a meeting in Crestview.

Two days later, the 52-year-old Bellinger had disappeared, leaving a suicide note that prompted a frantic search. Sheriff’s Office investigators also issued a warrant for his arrest after uncovering evidence that he had used $747,000 in county funds to buy a home in the Kelly Plantation area of Destin, where he lived with his wife, Kathleen.

He was found unresponsive May 4 in his 2011 Subaru sedan on a dirt road near Ballantrae Golf Club in Pelham, Ala. He was taken to a local hospital, where he died.

A coroner in Alabama eventually ruled Bellinger’s death a suicide. He had overdosed on Benadryl.

“I just imagine at that point, it was becoming very obvious the spotlight was going to be on him and it was all closing in,” Curry said.

“Here we approach the year mark, and I can say we can see the light at the end of the tunnel,” said Capt. Arnold Brown, who heads of the investigations division. “We’re actively working this with the state attorney’s office, and the FBI is still on board with us.”

In the past year, Brown and his team have combed through reams of documents, emails and witness interviews to uncover the extent of Bellinger’s theft and deception.

“In financial crimes … it always involves lying, cheating and stealing,” Brown said. “In my personal opinion, I don’t think he came here with the intent to lie, cheat or steal, but when he got here … he saw some weaknesses in the system. He found those holes and he used those for his personal gain.”

Officials say Bellinger authorized much of his questionable purchases through standing contracts the county had with Lewis Communications and The Zimmerman Agency.

The yacht purchase, which was brokered by Legendary Marine, was authorized through Zimmerman. The house was purchased through Lewis Communications.

After the fraud came to light, county officials immediately questioned the advertising agencies’ roles in Bellinger’s schemes and terminated both firms’ contracts.

Brown said his team still is investigating their involvement.

“We’re still looking at that,” he said.

Recovering millions

County officials have determined that Bellinger helped himself to more than $1.7 million in public funds and property.

“There is another $350,000 which we are still investigating,” Greg Stewart, special counsel to the county, said in an email to the Daily News. “These matters include not only misappropriated funds but also funds which were an inappropriate use of either BP grant proceeds or Tourist Development Tax proceeds.”

In addition to Bellinger’s house in Destin, only two other items — a $48,000 2008 Porsche Cayman and $6,258 worth of furniture — are considered illegal purchases.

The Porsche turned out to be Bellinger’s first theft. It occurred in August 2010, about three months after he was hired. He eventually traded it in for the Subaru and pocketed about $6,000.

The furniture was found in his home.

Curry said he is still stunned that Bellinger bought a house with county money.

“The fact that he did it in such a big way, I don’t know how he could have slept at night,” he said.

Brown agreed, saying that Bellinger likely expected to be caught.

“Buying an $800,000 house … I don’t see how he ever thought he would get away with it,” Brown said.

Bellinger’s wife left town shortly after her husband’s death and has declined to comment on his crimes. In August 2012, she returned the Subaru to the county, claiming she had no “proprietary interest” in the vehicle.

In February, officials outlined a plan to recoup the county’s losses.

Stewart estimates the county has recovered about 50 percent of the money and property Bellinger stole or spent without authorization.

“It is anticipated that many of these efforts will take some time as they proceed through the courts,” Stewart said. “However, the county is committed to recovering every taxpayer dollar that is possible.”

Moving Forward

In the wake of the scandal, county commissioners pledged a renewed commitment to transparency and increased oversight of all county departments.

Since then, the county has endured scrutiny from the local, state and federal levels. Commissioners have overhauled numerous internal policies on accounting, purchasing and marketing.

The Tourism Development Department has been moved under direct oversight of the county administrator and must comply with countywide purchasing policies. A new TDC also has been appointed.

The county also has implemented numerous changes ordered by the state Auditor General’s Office and hired a local accounting firm to serve as an internal auditor.

“I think the county is in a better place,” Commission Chairman Don Amunds said. “Everybody took this as a learning experience. … It’s been a very hard year.”

The Sheriff’s Office’s investigation is expected to take a few more months, Brown said.

“In the end, I think everybody will be satisfied with the outcome of this investigation,” he said. “It’s something that we really need to put behind us as a county. … I think the county is on the right path now.”

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In late April 2012, the title to a 2011 Marquis yacht arrived at the Okaloosa County Clerk of Court’s Office.

Mark Bellinger, the director of the county’s Tourist Development Council, had purchased the 40-foot luxury yacht in late December 2011 for $710,000 in bed tax money.

“We hadn’t heard anything about it,” recalled county Finance Director Gary Stanford, who found the title and showed it to then-County Administrator Jim Curry. “We had a lot of questions.”

From that point forward, officials began unraveling the biggest scandal to rock Okaloosa County since the 2009 arrest of former Sheriff Charlie Morris on corruption charges.

The ensuing investigation by the Sheriff’s Office grew to involve state lawmakers and auditors, the Florida Department of Law Enforcement and the FBI.

No one could have seen where it eventually led.

“The boat was absolutely the start of it. … I knew right there, there was something seriously wrong,” said Curry, who retired April 19.

Uncovering fraud

Bellinger, known among county employees as something of a creative dynamo with big ideas, was hired in May 2010. He arrived a few weeks after the Deepwater Horizon oil spill, and by all accounts he boosted tourism during a dark time on the Emerald Coast.

“There is no doubt he mesmerized everyone with his ability to formulate marketing plans and … restore tourism in this area,” Curry said. “To a certain degree, I think that helped mask what he eventually went on to do.”

When the title to the yacht arrived, it was clear Bellinger had made the purchase without approval from county commissioners. He managed to keep the boat a secret from the board for four months.

For Bellinger, whose boss was the chairman of the County Commission, it was easy to operate independently and outside the rules required of other county departments. Under his leadership, the funding of tourism-related events often was haphazard, with little or no accounting of how the money was spent.

He resigned May 1, 2012, after being confronted by county commissioners — two of whom wanted to fire him immediately — during a meeting in Crestview.

Two days later, the 52-year-old Bellinger had disappeared, leaving a suicide note that prompted a frantic search. Sheriff’s Office investigators also issued a warrant for his arrest after uncovering evidence that he had used $747,000 in county funds to buy a home in the Kelly Plantation area of Destin, where he lived with his wife, Kathleen.

He was found unresponsive May 4 in his 2011 Subaru sedan on a dirt road near Ballantrae Golf Club in Pelham, Ala. He was taken to a local hospital, where he died.

A coroner in Alabama eventually ruled Bellinger’s death a suicide. He had overdosed on Benadryl.

“I just imagine at that point, it was becoming very obvious the spotlight was going to be on him and it was all closing in,” Curry said.

“Here we approach the year mark, and I can say we can see the light at the end of the tunnel,” said Capt. Arnold Brown, who heads of the investigations division. “We’re actively working this with the state attorney’s office, and the FBI is still on board with us.”

In the past year, Brown and his team have combed through reams of documents, emails and witness interviews to uncover the extent of Bellinger’s theft and deception.

“In financial crimes … it always involves lying, cheating and stealing,” Brown said. “In my personal opinion, I don’t think he came here with the intent to lie, cheat or steal, but when he got here … he saw some weaknesses in the system. He found those holes and he used those for his personal gain.”

Officials say Bellinger authorized much of his questionable purchases through standing contracts the county had with Lewis Communications and The Zimmerman Agency.

The yacht purchase, which was brokered by Legendary Marine, was authorized through Zimmerman. The house was purchased through Lewis Communications.

After the fraud came to light, county officials immediately questioned the advertising agencies’ roles in Bellinger’s schemes and terminated both firms’ contracts.

Brown said his team still is investigating their involvement.

“We’re still looking at that,” he said.

Recovering millions

County officials have determined that Bellinger helped himself to more than $1.7 million in public funds and property.

“There is another $350,000 which we are still investigating,” Greg Stewart, special counsel to the county, said in an email to the Daily News. “These matters include not only misappropriated funds but also funds which were an inappropriate use of either BP grant proceeds or Tourist Development Tax proceeds.”

In addition to Bellinger’s house in Destin, only two other items — a $48,000 2008 Porsche Cayman and $6,258 worth of furniture — are considered illegal purchases.

The Porsche turned out to be Bellinger’s first theft. It occurred in August 2010, about three months after he was hired. He eventually traded it in for the Subaru and pocketed about $6,000.

The furniture was found in his home.

Curry said he is still stunned that Bellinger bought a house with county money.

“The fact that he did it in such a big way, I don’t know how he could have slept at night,” he said.

Brown agreed, saying that Bellinger likely expected to be caught.

“Buying an $800,000 house … I don’t see how he ever thought he would get away with it,” Brown said.

Bellinger’s wife left town shortly after her husband’s death and has declined to comment on his crimes. In August 2012, she returned the Subaru to the county, claiming she had no “proprietary interest” in the vehicle.

In February, officials outlined a plan to recoup the county’s losses.

Stewart estimates the county has recovered about 50 percent of the money and property Bellinger stole or spent without authorization.

“It is anticipated that many of these efforts will take some time as they proceed through the courts,” Stewart said. “However, the county is committed to recovering every taxpayer dollar that is possible.”

Moving Forward

In the wake of the scandal, county commissioners pledged a renewed commitment to transparency and increased oversight of all county departments.

Since then, the county has endured scrutiny from the local, state and federal levels. Commissioners have overhauled numerous internal policies on accounting, purchasing and marketing.

The Tourism Development Department has been moved under direct oversight of the county administrator and must comply with countywide purchasing policies. A new TDC also has been appointed.

The county also has implemented numerous changes ordered by the state Auditor General’s Office and hired a local accounting firm to serve as an internal auditor.

“I think the county is in a better place,” Commission Chairman Don Amunds said. “Everybody took this as a learning experience. … It’s been a very hard year.”

The Sheriff’s Office’s investigation is expected to take a few more months, Brown said.

“In the end, I think everybody will be satisfied with the outcome of this investigation,” he said. “It’s something that we really need to put behind us as a county. … I think the county is on the right path now.”